Josh Curtis gave a presentation on mobile game monetization through free-to-play models and advertising. He began with an overview of the large and growing mobile games industry. He then discussed best practices for making viral games, including in-app purchases, high replay value, user-generated content, and established brands. Key metrics for monetization success are ARPPU, eCPM, impressions, click-through rate, and install rate. Different ad formats like banners, videos, and playable ads can drive varying revenue. Successful monetization requires choosing the right ad formats, understanding users, and continuous testing and optimization.

1. Mobile Games:
F2P Monetization
Josh Curtis
BD Evangelist - Latin & North America
josh@chartboost.com
Social Media: joshfcurtis
Dic, 2016
PlatziConf Live

2. Josh Curtis
BD Evangelist - Latin & North America
josh@chartboost.com | Social Media: @joshfcurtis
300,000+ Games
1 Billion MAUs

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3
Agenda
1. Industry Overview
2. Make Viral Games
3. Key Monetization Metrics
4. Ad Monetization:
Formats & Best Practices
5. Key Takeaways

4. Industry Overview

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Industry Size
Source: NewZoo, April 2016

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Industry Size
Source: NewZoo, April 2016

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$655 Million+ and Growing for
Mobile Game Ad Revenue in US (2017)
Source: NewZoo, April 2016

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50% of Ad Revenue from
DATA: Chartboost Advertising, May 2016
50% 50%
United
States
Rest of World

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65% of advertising money
35%
65% iOS
Android
DATA: Chartboost Advertising, May 2016

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10DATA: Game Sessions
Americas is
50/50-ish
Europe is
Android
Asia: it
depends
But platform varies widely by
51% 49%
Americas
62%
38%
EMEA
47% 53%
APAC

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How to:
Make viral games
people want to play

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Influencers & everyday gamers
can show & share items to get
people excited about investing
in the game.
In-App Purchase
Perks

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Stream-first has become a
genre by itself. Today’s games
need to be designed to be
viewed, not only played.
High Replay Value

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Competitive and Cooperative
Multiplayer Games
These games are made for streaming,
offering unique scenarios to keep
viewers sharing & coming back for
more.

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User-Generated Content
Make it easy to inspect or view
the content; this lets the
viewer feel special and get a
shoutout.

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Established IP / Brand
A strong story allows influencers
and gamers to create a special
bond with the characters,
which keeps users excited to play
and share.

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Social Meme / Phenomenon
Tapping into a social meme is a
great way to get free publicity
and virality, mobile game
players & others will be
searching the keywords and
excited about the theme already.

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Design a Viral Game
3) User Gen
Content
4) Competitive
& Co-Op
2) High Replay
Value
1) IAP: In-App
Purchases
5) Established IP
or
Social Meme

19. Key Metrics for Monetization

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Monetization has 2 key
components
AdvertisingIAP
ARPPU eCPM
95-991-5%
ARPPU ($)
$ Revenue / (# Users
* Payer Rate %)
eCPM ($)
$ Effective Cost Per 1,000
Impressions
=
based off IR, CTR, Ad Bid
eCPM calculated off "Install Rate (IR), Click-Through-Rate (CTR), and the Advertiser bid that reflects the overall competitiveness of the

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Uniques
(DAU + MAU)
# Unique users who use your app
Bootups # of times app is opened up
Impressions # of Ads shown to users
Click-through
Rate (CTR)
% of users who Click or Tap an Ad in
your game
Install Rate (IR)
% of Users who Install an App from
an Ad in your game
eCPM ($)
$ Effective Cost Per 1,000
Impressions =
based off IR, CTR, Ad Bid
Revenue eCPM x # Impressions = Revenue
KEY ADVERTISING METRICS:
Metrics to track monetization

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Example Calculation: Daily Revenue
DAUs 50,000
Impressions 100,000
Ratio Impressions / Uniques 2:1
eCPM ($)
$10 per
Thousand Impressions
Revenue $1,000
CONCLUSION
For $1,000 / Day,
100,000 Impressions
If 2:1 ratio of impressions / uniques:
50,000 Users
REVENUE GOAL: $1,000 / DAY
eCPM ($) x Impressions (#) = $ Revenue $

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eCPM is a Variable
Ratio of Unique Users : Impressions
Ad Formats & Ad Locations
Devices: iOS vs Android vs Tablets, etc
User: Country, Hardcore vs Casual, Genre
Conversion & Ad Engagement Rates
Ad Traffic Sources

24. Ad Monetization

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25 DATA: Chartboost Advertising, US, May 2016

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Mobile banners
Lower eCPM
Take up visual & interaction space
Usually not “pretty”
Can work well for certain apps

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Static interstitials
Medium eCPM
Adaptable look & feel
Can be natural
between levels
High Volume of
Inventory

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Animated GIFs
Medium to High eCPM
Adaptable look & feel
Interstitial but with some
cinematic experience
Relatively new format

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Interstitial Video Ads
High eCPM
Can be entertaining
Opportunity to demonstrate or
describe gameplay
Can be skippable
Offers rewarded ad opportunity

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Rewarded Video Ads
Higher eCPM
Same Pros as Interstitial Video
Great Player Experience
Can boost Retention
Rewards Player- relevant reward
and amount (currency, life, skin,
etc.)

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Playable ads
High eCPM
User can experience game
already in ad
Very easy to update and
optimize

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Native ads
Non intrusive
Natural part of
gameplay
Variable eCPM
More Manual to Code In

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eCPM
User experience
Var eCPM
$8 - 15
$6 - 14
$7 - 13
$5 - 10
$2 - 6
DATA: Chartboost Advertising, US, May 2016
$0.50 - $1

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34 Source: Slideshare 2016
Use the Right Ad Format for your Game!

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Know Your Users &
Create Different Experiences
User Revenue
Frequency of booting up
Devices: iOS vs Android, Phone vs Tablet, etc
User Demographics, Location, etc
Conversion & Ad Engagement Rates
Create extra triggers to test & turn on or off:
Capping, formats, locations

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General Rules of Thumb:
Ad Monetization in Mobile Games
Placement of ad should feel “natural” as part of the gameplay
More Users = More Money from Ads! Scale is important
Show Ads at key game “break” intervals
Choose the right ad formats for you
Focus on sweet spot: Retention + Revenue

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Best Practices Recap
1. Development, design & placement of ad
products cannot be an afterthought
2. Know your users & treat them differently
3. Set up revenue goals for your users
4. Experiment & Optimize: Test, Test, Test!
5. Treat the ads business like a business line:
Invest in it & hold it accountable for revenues

38. Thank You!
Josh Curtis
BD Evangelist, Latam & US
josh@chartboost.com
LinkedIn: joshfcurtis
Twitter: joshfcurtis